If consumption of a good generates positive externalities, a government policy of subsidizing purchases of the good will lead to a more efficient outcome.

Name: If consumption of a good generates positive externalities, a government policy of subsidizing purchases of the good will lead to a more efficient outcome.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Subsidizing a good with positive externalities encourages more consumption, aligning private benefits with social benefits, thus improving efficiency.

If Consumption of a Good Generates Positive Externalities, a Government